arXiv:2610.09301v1 Announce Type: new Abstract: We propose an energy-stable arbitrary Lagrangian-Eulerian (ALE) finite element formulation for incompressible Navier-Stokes flows with surface-tension-driven free boundaries. The key ingredient is a multiplier-free compensated tangential velocity formulation, which redistributes boundary nodes via the discrete tangential curvature residual. The relaxation parameter governing the artificial tangential velocity is scaled according to the viscous-capillary balance, yielding the natural choice $\alpha= \gamma_0/ \mu $, where $\gamma_0$ is the surface tension coefficient and $\mu$ is the dynamic viscosity. We prove that the fully discrete scheme is well-posed, energy-dissipative, and temporally consistent with its semi-discrete counterpart. Numerical results confirm the robustness of the proposed method across a range of $\mu$ and $\gamma_0$ values. Furthermore, the method exhibits superior mesh quality preservation compared with the BGN method, particularly in the small-time-step regime.